What condition must be met for a Basecamp Fitness customer to pay off the agreement early?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, a customer is allowed to pay off their agreement early if no events of default have occurred. The early payoff amount is calculated as the sum of all remaining unpaid rental payments, discounted to a net present value at a rate of up to five percent (5%), plus the purchase option price.

This condition protects the owner by ensuring that the customer has consistently met their obligations before being allowed to terminate the agreement early. By discounting the remaining payments to their net present value, the owner receives a fair amount that accounts for the time value of money. The inclusion of the purchase option price ensures that the owner is compensated for the equipment's value at the end of the lease term.

For a prospective Basecamp Fitness franchisee, this clause provides a degree of flexibility for customers who may wish to terminate their agreements early. However, it also highlights the importance of adhering to the agreement's terms to maintain eligibility for early payoff. Franchisees should ensure that their customers understand these conditions to avoid any misunderstandings or disputes.